Monday 14th of June 2010
In the aftermath of the recession, millions of Britons all over the country are still having a hard time trying to pay their bills and afford the cost of their daily essentials, particularly if they’ve racked up the debt in recent years.
Information on individual voluntary arrangements (IVAs) could, however, solve their questions on how to shore up their finances if the new government’s Budget includes a VAT increase.
According to general secretary of the Trades Union Congress (TUC) Brendan Barber, any such measure could lead to rising inflation, higher interest and job losses in the retail sector.
And the effect of a rise in VAT could be even greater on those with debts yet to pay.
IVAs may, though, make it easier for people to free up disposable income and deal with impending tax increases - by freezing the interest on all the money they owe on unsecured financial products and merging their repayments into one monthly outlay.
Researching IVA info may consequently be a sensible idea for those worried about the effect any upcoming legislation changes could have on their bank balances.
"The chancellor should resist the temptation to be VATman when he presents his Budget," Mr Barber says.
By Rachel Powell
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVAs may be ideal for some of the millions of Britons with debt worries
